Knowing how to read financial statements is an essential skill for any business owner, investor, and entrepreneur. The answers to be found in the different types of financial statements can help you to understand the financial health of your business and equip you to make better decisions.
Despite the importance of these insights, most business professionals are not trained in how to read financial statements. That’s what this guide is designed to rectify. We’ll show you the different types of financial statements and provide you with the knowledge and tools to read and understand what they’re telling you about your business.
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Different Types of Financial Statements
There are several different types of financial statements. Individually, each can offer valuable information about your business. Together, these financial statements can be an even more powerful tool.
Reading and Understanding Financial Statements
Very few business owners and entrepreneurs are trained in how to read and understand financial statements. This puts them at a huge disadvantage in terms of accessing important information about their business. The articles below will equip you to better understand your financial statements and use those insights to make better business decisions.
How to Use Financial Statements
Financial statements are not just documents full of numbers meant to satisfy regulators and partners and then be filed on a shelf. If you know what the numbers in the three main types of financial statements mean, you can use them to inform your business decisions and drive better results for your company.